Millions of American retirees are anxiously anticipating the Social Security Cost of Living Adjustment (COLA) increase in 2025.
Although the COLA percentage applies equally to all beneficiaries, the actual dollar increase will differ based on each retiree’s current benefit amount.
For those receiving lower-than-average checks, the increase may be modest, with some retirees seeing only about $100 more in monthly benefits.
Table of Contents
Who Might See a $100 Increase After the 2025 COLA?
The Senior Citizens League has forecasted a 2.57% COLA for 2025, slightly down from the previous estimate of 2.63%. If this projection holds, it could result in an additional $100 or more for retirees with higher monthly benefits.
For example, if your current Social Security benefit is $4,000 per month in 2024, a 2.57% increase would raise your new monthly payment to around $4,102.80—an increase of just over $100.
However, if inflation rates continue to change in the upcoming months, these projections could be revised, influencing the final COLA percentage.
| 1000 Rental Assistance For Social Security |
| Canada Disability Benefit 2400 Payment |
| 5600 Month July 2024 |
| New Bill Increasing Social Security Checks In Us |
| Canada Pension Plan |
What About the Average Retiree?
For the average retiree, the increase will be smaller. As of August 2024, the average Social Security retirement payment is $1,919 per month.
With a 2.57% COLA, this amount would rise to approximately $1,968, adding an extra $49 each month.
For many retirees, this increase might not seem substantial, especially considering rising living expenses, but every bit helps.
High Earners and Maximum Social Security Benefits
Although only a few retirees receive the highest possible Social Security benefit, some do qualify for payments as high as $4,873 per month in 2024. This maximum benefit is typically received by individuals who:
- Received the highest amount of taxable income for 35 years.
- Worked for at least 35 years.
- Paid sufficient Social Security taxes.
- Delayed claiming benefits until age 70.
For these high earners, a 2.57% COLA could increase to over $125 per month, bringing their monthly benefit close to $5,000. However, for the average retiree, the increase will be much smaller, and those with below-average benefits may see only a modest gain.
SSI as an Option for Low Benefits
If your Social Security payment is particularly low, applying for Supplemental Security Income (SSI) might help boost your overall benefits.
SSI is intended to provide additional financial support to low-income individuals, especially those with limited resources. Eligibility is based on income and asset limits, so it’s worth considering if your Social Security benefit is insufficient to meet your basic needs.
The 2025 Social Security COLA will help you financially in different ways, based on how much you currently get from Social Security. While high earners might see a $100 or more increase, most retirees will receive a smaller increase.
With inflation rates still fluctuating, the final COLA percentage may change, affecting the exact numbers. Staying updated on these changes is essential, as every dollar counts in maintaining financial stability during retirement.
FAQs
What is the projected 2025 COLA increase?
The projected increase is currently 2.57%, though this may change depending on inflation data.
Will all retirees receive a $100 increase?
No, only those with higher monthly benefits (around $4,000) might see a $100 increase.
What is the average Social Security check in 2024?
As of August 2024, the average payment is $1,919 per month.